In the first public comment by an Israeli official on the USD 110-billion US sale of ships, tanks and the latest anti- missile systems to the kingdom, Lieberman said he had expressed his concerns in recent talks with US National Security Advisor HR McMaster.
"I'm not at peace with any arms race and the huge Saudi purchase for sure doesn't add much to our peace of mind," he said in an interview with Israeli army radio.
"Weapons deals in the Middle East just in 2016 reached USD 215-216 billion and this is no small sum," Lieberman said.
"It needs to be understood that there is a crazy arms race going on, the amount of arms all the players in the region are acquiring and the desire to produce weapons in places like Yemen and Lebanon."
The Saudi deal, to be phased over 10 years, was announced on Saturday as US President Donald Trump began a two-day visit to the Gulf state before travelling on to Israel.
Nevertheless, Lieberman said, "We are following developments and are aware and have ways of dealing with this."
The White House said that in talks with Israeli Prime Minister Benjamin Netanyahu in Jerusalem on Monday, "President Trump underscored the United States' ironclad commitment to Israel's security, including to the maintenance of Israel's qualitative military edge."
The thrust of the deal with Riyadh aims to help the Saudi military bolster its defences to deter bitter rival Iran and its missile programme, which Netanyahu has said potentially poses an existential threat to the Jewish state.
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